Page 20 - Plastics News March 2021

FeAtures

The Mahabudget 2021-22

Deputy CM Ajit Pawar has laid focus on health, woman and child welfare, infrastructure development, agri-
culture, irrigation among other things in his budget.

mid ongoing coronavirus pandemic and economic ‘’Considering the Current economic slowdown in the
Adownturn, Maharashtra Deputy Chief Minister Ajit National and the State economy, it will be not easy to
Pawar, who holds the finance and planning department, achieve the revised revenue estimates as above. However,
presented annual budget for 2021-22 on maonday March the Government will make full efforts to achieve the
8, 2021 with an estimated revenue deficit Rs 10,226 crore revised target in revenue collection,’’ said Pawar. The
and fiscal deficit of Rs 66,641 crore. Pawar however, hopes Global pandemic of “Covid-19” has affected the State
to mop up Rs 1,800 crore through his tax proposals. economy unprecedentedly in the last year. As a result
industry, service and other sectors of the State have been
The state had estimated a revenue collection of Rs
3,47,457 crore in 2020-21 budget. Due to Rs 14,366 severely impacted.
crore reduction in state share tax received from central However, despite slowdown in the economy, keeping
government this year, revised target of revenue collection women as a focal point, Pawar has proposed concession
in stamp duty for property registration made in the name
of women. ‘’On the International Women’s Day, I propose
concession in Stamp Duty of 1 Percent over the prevailing
rate exclusively to Women, provided the transfer of house
property or registration of sale deed is in the name of
woman or women only,’’ he said.
Due to the above tax concession, there will be revenue
shortfall of around Rs 1,000 crore. In addition, Pawar has
proposed an increase in State Excise Duty on Liquor.
It is decided to classify country liquor into two separate
categories as branded and non-branded country liquour,
while increasing State Excise Duty to Rs 220 percent of
manufacturing cost or Rs187 per proof litre whichever is
is fixed at Rs 2,89,428 crore. The budget estimate of total high on branded country liquor only. Due to this, the State
expenditure for the year 2020-21 was Rs 4,04,385 crore is estimated to get additional revenue of Rs 800 crore.
but the revised estimate is now Rs 3,79,504 crore for the Further, Pawar has proposed to increase the rate of Value
same in 2021-22. Added Tax (VAT) on the sale of liquor as prescribed in

In the budget of 2021-22, revenue collection is estimated Schedule-B of Value Added Tax Act from the existing 60
at Rs 3,68,987 crore and revenue expenditure at Rs percent to 65 percent. He has also propose to increase
3,79,213 crore. The revenue deficit is pegged at Rs 10,226 the rate of Value Added Tax (VAT) on the sale of liquor as
crore and fiscal deficit at Rs 66,641 crore. The government prescribed in Section 41 (5) of Value Added Tax Act from
has made a provision of Rs 58,748 crore. the existing 35 percent to 40 percent. ‘’Due to this, the
State is estimated to get additional revenue of Rs 1,000
Pawar in the annual budget for 2021-22 has estimated crore,’’ he said.
tax revenue of Rs 2,18,263 crore. This includes revised
estimates of Rs 1,84,519 crore on account of the Goods and Budget Proposals
Services Tax (GST), Value Added Tax (VAT), Central Sales Despite passing from a critical financial crunch, as expected
Tax (CST), Profession Tax (PT) and other important taxes. Pawar has laid focus on health, woman and child welfare,

Plastics News March 2021 20